Adopt Resolution #19-032 Resolution Extending Certain Community Development Professional Services Contracts

The City's Community Development Department consists of the following areas.

• Planning (long-range planning, zoning administration, zoning code enforcement)
• Economic Development (business retention and expansion, business subsidy requests)
• Inspections (building code, electrical code, property maintenance code)

For several years, the City has balanced in-house Staff with contracted Staff to more fluidly react to market conditions. These contracted services are typically not project based, but an extension of City Staff. Employees of these contracted services hold regular office hours and provide direct support to our residents and business owners.

City Code Section 2-275 states that the City shall solicit Requests for Proposals (RFP) for services that exceed a City cost of $15,000 every three to five years. Said section goes on to say that the City Council may, at its discretion, formally extend a current standard services contract upon the recommendation of City Staff.

Planning and Zoning (Land Use Planning, Zoning Administration, Code Enforcement)

The City currently contracts with WSB Associates for planning, zoning, and code enforcement. WSB generally provides two (2) days of daily planning support plus various special projects. Ramsey's primary project manager bills at approximately $104/hour. As needed, Ramsey does receive backup at peak periods from an entry level planner with a billable rate of approximately $70 to $80. These are competitive rates and WSB has provided an excellent service. Additionally, the City is able to tap into other areas of expertise and service such as environmental planning, economic development, etc. There are other firms with a lower hourly rate; however, Staff would be concerned about quality of work, depth of backup, and additional services provided.

Review of Land Use Applications is charged to an escrow established by the Developer/Applicant. The costs of Land Use Applications are the responsibility of the Applicant and are not charged to the City's General Fund. Review of Building Permits is funded through Permit Fees. Administration of Code Enforcement Cases is funded by the General Fund, but is slightly offset by Administrative Citation revenue.

The hourly rate for contracted services is higher than hiring a planner directly. However, this arrangement allows the City more flexibility if activity levels drop. Activity levels can swing significantly in a 5-10 year period. Market Indicators are reflecting another strong year in 2019 and continue growth expansion beyond 2019, but a slight slowdown after 2019.

At some point, Staff would like to discuss hiring an Assistant Planner for entry level projects such as permit review and code enforcement. However, Staff would like to monitor recent changes to the City's Code Enforcement Program to better understand workload before discussing this further.

WSB also provides some economic development policy and marketing assistance on a project by project basis.

Planning Alternatives

• Continue with Existing Contract with WSB
• Authorize Requests for Proposals for Other Interested Firms
• Hire an Assistant Planner directly

Building Inspections

The City has contracted with Inspectron, Inc. since 2011 and the City has extended the contract in the past. The billable rate is $50 per hour. This is an extremely competitive rate. Based on a recent request for quotes for billable rates, average billable rates actually range from $75 per hour to $90 per hour. This contract automatically extends, unless the City cancels said contract. The City Council can approve an extension under the existing contract. The City does not need to execute an additional contract. Funding is provided by Building Permit Fee Revenue.

The existing contract has an auto-renewable clause. The City can cancel at anytime with appropriate notice. The City is not obligated to utilize services not needed (if workload does not support need, service level is reduced).

Building Inspections Alternatives

• Continue with Existing Contract
• Authorize Requests for Proposals for other interested firms
• Hire a Building Inspector directly (planned for 2021)

Staff recommends continuing the current contract and re-evaluate after one (1) year. Due to a retirement at the end of January, the City is actively searching for a Building Official, which is the manager of this activity. Staff would like to provide this new team member the opportunity to evaluate alternatives and make recommendations. Staff would not recommend making a change in the middle of a construction season, and would recommend any changes be limited to the end of the calendar year.

Electrical Inspections

Local Municipalities in Minnesota can elect to administer the electrical code locally. However, a majority of communities elect to allow the State of Minnesota administer the Electrical Code within their community. The benefit of administering locally is better and more streamlined coordination with building permits (one stop shop).

The City has contracted with Tokle Inspections since 2011. Tokle Inspections sets the Electrical Permit Rates and Charges. The City collects the appropriate fees and retains 20% of revenue collected. The remaining revenue is distributed to Tokle Inspections. Funding is provided by Electrical Permit Fee Revenue. Administering the local electrical code locally gives the City more control over customer service and a share in revenue. Staff finds the current levels of service acceptable.

The existing contract has an auto-renewable clause. The City can cancel at anytime with appropriate notice. The City is not obligated to utilize services not needed (if workload does not support need, service level is reduced).

Electrical Inspection Options

• Continue with Existing Tokle Inspections Contract
• Authorize Request for Proposals (RFP) for Interested Contractors to perform local electrical code administration
• Delegate responsibility to State of Minnesota
• Hire Electrical Inspector Directly

These expenses have been included in the 2018 General Fund Budget. Revenue for these activities are generally supported by Application Revenue.

Staff recommends the following:

1. Continue contract with WSB Associates for Planning Division support for a period of three (3) years. A new contract will be forwarded to a future Council date for consideration.
2. Continue contract with Inspectron, Inc. for Building Inspection Division support for a period of one (1) year. The existing contract has a built in extension that can be canceled with appropriate notice.
3. Continue contract with Tokle Inspections for Electrical Code Administration for a period of three (3) years. The existing contract has a built in extension that can be canceled with appropriate notice.

Motion to adopt Resolution #19-032 extending certain contracts for the Community Development Department.